Indian authorities have confirmed that most retail investors lose money despite new regulatory measures. The rules of SEBI have not stopped the wave of speculation on stock markets. According to official government data, the number of retail traders who lost money in the first quarter of 2026 was nine out of ten.

The aggregate loss stood at 916.85 billion rupees, equivalent to 9.6 billion dollars, a decline compared to 1.1 trillion rupees the previous year. This figure represents one of the most significant losses in the history of India's financial exchanges, highlighting a deep structural crisis in the options sector. The main cause of this disaster lies in the lack of protection for individual investors, who were left to fend for themselves against aggressive competition from large players.

The company stated that the Securities and Exchange Board of India (SEBI) identified a systemic problem: nine out of ten traders lose, while large players, including investment banks and high-frequency trading firms, profit enormously. Current regulations fail to balance these interests, creating a predatory speculative environment. Containment measures implemented by the government, such as increasing position limits and restricting contract sizes, had a negligible effect.

The company stated that the options offering has become too expensive for the average public, pushing small investors toward risk. Instead, large players benefited from a more liquid and less expensive market, allowing them to maximize profits with less capital. Market data shows a drastic decline in trading activity.

The total notional turnover for options and futures dropped by 23% to 214 trillion rupees in July 2026, reaching a historical low of 17 months. This decline reflects directly the contraction of product offerings, which fails to meet the demand for speculation generated by an unreliable public. Despite new rules, the influence of retail traders has grown, with nearly 31% of trading contracts in these products in their favor.

This increase was possible because options offer a very low entry price, making investment accessible to those without significant capital. However, this mechanism has created a vicious cycle: small investors enter, lose, and the market remains dominated by a few large players. The situation is worsened by regulations favoring large players.

Rules introduced by the central bank have increased funding requirements for brokers, making transaction costs prohibitive for small investors. Additionally, the company stated that the Indian stock market is gaining while retail traders are losing, creating an unprecedented economic power gap between social classes. Future developments for the market are uncertain and depend on the government's ability to balance financial stability with the freedom of speculation.

If current rules continue without flexibility, the market could collapse completely, leaving thousands of small investors outside the game. If instead the government introduces protection mechanisms, speculation could resume, but only with a more aware and less vulnerable public.